Finding Text
2022-005 Allowable Costs Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Entities receiving Health Center Program funds must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. [ ] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Condition During our testing of payroll expenditures, it was noted several employees were paid at rates in excess of the approved rate of pay per the respective employee?s personnel file. Context This finding appears to be a systemic problem. A sample size of 34 employees included 7 that were paid at a rate greater than the most recent approved rate per the employee?s personnel file and 2 additional employees who did not have documentation of the approved rate in their personnel file. Cause Due to high turnover in all departments, the human resources department was not able to properly file and retrieve all required documentation relating to the approved rates of pay for new hires and rate increases approved by management and the Board during the year. Effect Rates of pay being paid to employees are not supportable by the Organization?s personnel files. Questioned Costs None identified. Recommendation We recommend each employee?s personnel file be complete and kept up to date to include all rate increases whether due to performance or cost of living increases in order to support the amounts being paid to employees. Views of responsible officials and planned corrective action HR is keeping track and documenting all salary raises and as part of procedure, filling out form (Personnel Action Form) prepared by HR and signed by the CEO every time a raise is given. The form will be put in the employee file. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.